Business leaders optimistic following US Supreme Court sales tax ruling

Business leaders optimistic following US Supreme Court sales tax ruling

Thursday's decision in the case of South Dakota v. Wayfair overturns a 1992 ruling that said retailers could be required to collect state sales taxes only in sales in states where the retailers had a physical presence.

This law affects IL shoppers that check out of shopping sites without paying sales tax, and the sites are now required to add them.

"The old physical presence rule created these pockets where businesses were structuring and locating in states where they didn't have a lot of sales so they could sell online and sell across the border, not having to collect sales tax", North Dakota Tax Commissioner Ryan Rauschenberger said.

You'll have to pay up if the state you live in passes laws that require online retailers to collect sales tax, says Joseph Bishop-Henchman, the executive vice-president of the Tax Foundation.

"For years, this situation has resulted in substantial loss of revenue to states, thus increasing the tax burden on those who do pay the taxes they owe", said Bill Waltz, vice president of taxation and public finance for the Chamber. "These critiques underscore that the physical presence rule, both as first formulated and as applied today, is an incorrect interpretation of the Commerce Clause", he wrote. That may change as state laws are modified.

But the measure fell victim to a filibuster, with opponents arguing that the state would do better to wait and see how the Supreme Court rules and how Congress reacts. He is CEO of the art collective Meow Wolf and his group brings in about $12 million a year with most coming for admissions to his New Mexico art attraction.

Illinois Shoppers Pay More for Online Purchases, Good News for Small Businesses
John de Jong, owner of Newton Animal Hospital in MA and president-elect of the American Veterinary Medical Association. Walls think people understand the importance of keeping brick and mortar businesses for our communities.

The winners are local brick and mortar businesses, which will be able to compete pricewise with online retail giants. That's because they typically have a physical store in whatever state the purchase is being shipped to.

"If sales tax was the only barrier keeping them from shopping local and then throw in you might to have pay shipping fee if you shop online, I think it's encouraging for local businesses", Wilson said. The 5-4 ruling is a win for states who say are missing out on billions of dollars a year from online sales tax.

eBay has always supported tax policy that is fair to entrepreneurs, artisans, and small businesses. The decision in Thursday's South Dakota vs Wayfair ruling uses economic nexus with minimum thresholds as the standard for substantial nexus.

If you're a big Amazon.com shopper, and live in one of the 45 states with a sales tax, you likely already pay sales tax on some orders. 2514), which provides that a seller is considered to be doing business in the State and subject to our General Excise Tax if the seller has $100,000 in sales or more than 200 transactions in the current or immediately preceding taxable year. To be compliant with the Streamlined Sales Tax Agreement, a State must administer one tax rate. The Court in Wayfair overruled Quill as well as an earlier physical presence case, National Bellas Hess v. Department of Revenue of IL.

The Trump administration had urged the justices to side with South Dakota.

Related Articles